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Ecobank’s 2013 profit fall by 48%

By on May 3, 2014

Ecobank Transnational Incorporated Plc recorded a 48 per cent fall in profit after tax in the 2013 financial year, the group’s audited results for the period has shown.

According to the results, submitted to the Nigerian Stock Exchange, the group’s PAT fell from N45.486bn in 2012 to N23.571bn in 2013.

The group also recorded a 34 per cent decline in its profit before tax, with the figure declining to N35.375bn in the review period from N53.624bn the previous year.

On the positive side, the group declared a 16 per cent rise in both its revenue and total assets. While revenue rose from N274.441bn in 2012 to N319.563bn, total assets climbed to N3.599tn from N3.114tn.

Similarly, the Ecobank’s loans and advances to customers appreciated, rising by 24 per cent to N1.825tn from N1.474tn.

The Group Chief Executive Officer, ETI, Mr. Albert Essien, was quoted in a statement as saying that the revenue growth despite the difficult operating environment was a plus.

He said, “Revenues for the full year surpassed $2bn, showing strong organic growth of 16 per cent despite a tough operating environment. The focus on efficiency across our diversified platform continues to pay off, with the cost-to-income ratio improving in each of our six geographical clusters.”

Essien, who also pointed out that the group’s balance sheet growth was strong, with a double-digit increase in customer deposits and over 20 per cent growth in net customer loans, said the bank remained resilient.

He said, “Our profitability for 2013 has been impacted by increased impairment provisions. A significant proportion of these relates to certain legacy assets in Nigeria which the group took a conservative decision to fully address. As a result, we are reporting profit after tax down by nearly half.

“Ecobank’s underlying businesses across Africa have remained resilient during challenging times, which is testament to the dedication of our staff and their commitment to customer service. This is further reflected in the strong performance reported in the Group’s 2014 first quarter results.”

 Last year had been turbulent for ETI following allegations that the group, which is listed on the Nigerian Stock Exchange, had breached corporate governance rules and inserted misstatements in its 2012 financial accounts.

Although the group denied the allegations, an investigation by the Securities and Exchange Commission confirmed corporate governance breaches in the company.

Consequently, SEC had asked it to convene an Extra-Ordinary General Meeting to address the gaps and the company had since said it was working to resolve all issues.

[Punch]